12/1/2022
Dec 01, 2022
The market story today was large, limit-down losses in soy oil dragging down soybeans, corn, and wheat. Soybeans suffered the biggest losses with lows around -43 cents on the day. With one trading day remaining, soybeans sit just above unchanged for the week on the board. Today's sizable losses surprised a lot of people in the market after the EPA renewable fuel blending proposals showed increases of 20.82-22.68 bln gallons for 2023-2025. These proposals lend some support over time but nothing can be verified until mid-2023. The weekly export sales report did little to help lift the market. Soybean net sales were reported at 694k tonnes, even with this time last year. Corn sales came in at 603k tonnes, about 50% of last year's volume on this week. China is largely missing. The USDA made an 8.a.m. announcement this morning of 114,300 tonnes of corn to Mexico for the 2022/23 marketing year. Marketing year to date, corn export sales pace is 324 million bushels short of the USDA target and soybean sales pace is 51 million bushels short. With the soybean export program winding down, look at fixing basis on your remaining old crop soybeans. With today's lock-limit down close in soy oil, the entire soy complex with have expanded limits tomorrow.
